MOSCOW, September 18. /TASS/. Russian business ombudsman Boris Titov has called for dismissing criminal proceedings with regard of Michael Calvey, founder of the Baring Vostok Capital Partners private equity firm, and other defendants in the case.
Talking to TASS on Wednesday, he referred to the results of valuation of shares of the International Financial Technology Group (IFTG) as the ground for closing the case.
"This situation once again proves that it is unacceptable to use law enforcement resources to resolve corporate conflicts. I believe that now it is necessary to release all the defendants in the case and stop the criminal prosecution," Titov said.
The ombudsman also noted that these arrests caused serious damage to the business climate in Russia.
"The expertise only proved that they should not have initiated the Baring Vostok Capital Partners (BVCP) case at all. They started with large-scale arrests of a large number of people involved, which seriously damaged the business climate in Russia and the corporate community. There were problems with a number of foreign companies. Many foreign investors, who have worked in Russia for a long time, like Calvey, were perplexed," the business ombudsman explained.
The financial expertise in the Baring Vostok case found out that the price of shares of the International Financial Technology Group (IFTG) that were transferred to Vostochny Bank to repay a loan of 2.5 bln rubles ($38.8 mln) was not 600,000 rubles ($9,335), as it was earlier claimed by the investigation, but 3.8 bln rubles ($59.1 mln).
This confirmed the defense's position that there was no corpus delicti in the actions of Michael Calvey and other persons involved in the case.